Perseus Declares Initial Resource and Reserve Estimates for Yaour?(C) Gold Project

2017-11-02 / @nasdaq

PERTH, Western Australia, Nov.02, 2017(GLOBE NEWSWIRE) -- Perseus Mining Limited ("Perseus" or the "Company") (TSX:PRU) (ASX:PRU) has completed its initial Mineral Resource and Ore Reserve estimate for the Yaour?(C) Gold Project in C??te d'Ivoire, West Africa. The full release include the JORC table as required under the ASX listing rules is available for download from www.perseusmining.com and www.asx.com.au.


	Yaour?(C) Gold Project layout

A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/8b5a6c89-04bf-4a9a-9bf1-0c5f9fe5a0eb

HIGHLIGHTS

An Indicated Mineral Resource totalling 43.1 million tonnes, grading 1.39 g/t gold and containing 1.93 million ounces of gold has been independently estimated for Yaour?(C) at a cut-off grade of 0.4g/t.
Estimated Inferred Resources total 46 million tonnes, grading 1.0 g/t gold and containing 1.5 million ounces of gold at a cut-off grade of 0.4g/t.
Indicated and Inferred Mineral Resources have been estimated using Multiple Indicator Kriging (MIK) and are contained within an optimal pit shell generated at a gold price of US$1,800/oz
The Yaour?(C) Mineral Resources include Ore Reserves totalling 26.8 million tonnes of ore, grading 1.76 g/t gold and containing 1.52 million ounces of gold.

Managing Director Jeff Quartermaine Comments:

"The recently completed Mineral Resource and Ore Reserve estimates for Yaour?(C) have been meticulously prepared by a combination of our in-house technical team and external consultants. We are confident that this work provides a solid and technically credible foundation for evaluating the economics of a development of the Yaour?(C) Gold Mine. The work reflects our enhanced understanding of the structural controls on mineralization in the vicinity of the known deposits, derived from a recently completed drilling programme on the Yaour?(C) and CMA mineralization and a thorough assessment of data previously collected by prior owners of the property.

"The Mineral Resources and Ore Reserves announced today only represents mineralization located in close proximity to the historically mined mineralization. As part of our analysis, we have identified a number of further drill targets adjacent to the existing pits and in close proximity to the proposed processing plant. These targets will be followed up in the near future and are expected to increase our mineral inventory at Yaour?(C) in the short to medium term.

"In addition, we have come to appreciate just how under-explored the Yaour?(C) land package is away from the areas that have been previously exploited. We will be mounting a systematic exploration programme to evaluate the remainder of our large land holding in coming years with the objective of materially increasing Mineral Resources and Ore Reserves that can be processed through a future Yaour?(C) processing facility."

Overview

The Yaour?(C) Mineral Resource and Ore Reserve is based on a project which involves mining and processing of ore from two adjacent open pits and previously processed oxide heap leach material. The Ore Reserve estimate is based on pit limit optimisation, design and scheduling using a gold price of US$1,200/oz and input parameters based on a combination of Perseus's operating experience at Edikan and Sissingu?(C), as well as Yaour?(C)-specific test work, studies and quotations.

Mineral Resources

Yaour?(C)'s Indicated Mineral Resource at 2 November 2017 is estimated at 43.1 million tonnes grading 1.39 g/t gold and containing 1.93 million ounces of gold at a cut-off grade of 0.4g/t.

Estimated Inferred Resources total 46 Mt of material grading at 1.0 g/t gold and containing 1.5 million ounces of gold at a cut-off grade of 0.4g/t. The resource classification categories of Indicated and Inferred under the JORC Code are equivalent to the CIM categories of the same name (CIM, 2010) (refer to Appendix 1 for JORC 2012 Table 1, Sections 1, 2 and 3).

Table 1: Yaour?(C) Mineral Resources - November 2017

Deposit	Deposit Type	Indicated Resources			Inferred Resources
		Quantity	Grade	Gold	Quantity	Grade	Gold
		Mt	g/t gold	Mozs	Mt	g/t gold	Mozs
CMA	Open Pit	24.8	1.81	1.44	16	1.2	0.6
Yaour?(C)	Open Pit	16.5	0.81	0.43	30	0.9	0.9
Sub-Total	Open Pit	41.3	1.41	1.87	46	1.0	1.5
Heap Leach⁴	Stockpile	1.8	1.02	0.06
Total		43.1	1.39	1.93	46	1.0	1.5

Depleted for previous mining.
0.4g/t gold cut-off applied to in situ open pit material
In situ resources constrained to US$1,800/oz pit shell
Heap leach resources are stated at 0.0g/t gold cut-off if the average grade of the heap component is above 0.4g/t
Mineral Resources are inclusive of Ore Reserves
Numbers are rounded

Geology
The Yaour?(C) Mineral Resource comprises two adjacent deposits, Yaour?(C) and CMA that occur near the south-eastern flank of the informally named Yaour?(C) greenstone belt in central C??te d'Ivoire. Mineralisation is hosted by Paleoproterozoic aged metabasalts and felsic intrusive rocks of the Birimian Supergroup. The rocks are metamorphosed to lower greenschist facies and only locally feature penetrative deformation fabrics.

In both deposits, gold is associated with disseminated pyrite. At CMA, mineralisation is associated with quartz-albite-carbonate veining in reverse fault structures that dip at 25 to 30 degrees to the east. The Yaour?(C) deposit comprises mineralisation controlled by east-dipping structures, similar to CMA, in addition to mineralisation associated with quartz-tourmaline-chlorite-carbonate veining controlled by NE and NW striking, sub-vertical faults and also stockwork quartz veins with associated alteration selvages hosted by a granodiorite intrusive body.

The combined deposits extend over an area around 1.4 km east west by 2.1 km north-south. No significant concentrations of other economic metals or deleterious metals occur with the mineralisation. Arsenopyrite and molybdenite occur in trace quantities. A portion of the Mineral Resource and Ore Reserve consists of heap leach material from previous operations.

Previous Mining
Previous open pit mining has partly depleted oxide resources at Yaour?(C). Between 1999 and 2001, Compagnie Mini??re d'Afrique (CMA) mined approximately 1.9 million tonnes of ore grading 3.9g/t gold and treated the ore by heap leaching. The majority of ore derived from the CMA pit.

Between 2008 and 2011 Cluff Gold plc (later renamed Amara Mining plc) mined approximately 2.1 million tonnes @ 1g/t gold, mainly from Yaour?(C) pit, with the ore again being treated by heap leaching. Cluff recovered a total of 54,382 ounces of gold.Waste from the Yaour?(C) pit was backfilled into the CMA pit.

Historic survey data are available from which to form a surface approximating the final CMA pit void. The surface representing the limits of historic mining in Yaour?(C) pit was derived from historic survey data and a recent LiDAR topographic survey commissioned by Perseus.

Drilling Techniques
Yaour?(C)'s Mineral Resources are delineated by reverse circulation (RC) and diamond core (DD) drill holes undertaken by previous operators BRGM, Cluff Gold plc, Amara Mining plc and by Perseus along with minor amounts of aircore (AC) drilling by Perseus.Information from Amara auger drilling was used for estimation of remnant heap leach resources.

Table 2:Yaour?(C) Resource Area Drilling Summary

Phase	Type	No. Holes	Metres of Drilling
Phase	Type	No. Holes	Auger	RAB	AC	RC	Diamond	Total
BRGM 1998 - 2001	RC Diamond Subtotal	82 2 84	- - -	- - -	- - -	5,082 - 5,082	- 155 155	5,082 155 5,237
Cluff 2005 - 2007	RC Diamond Subtotal	676 62 738	- - -	- - -	- - -	45,645 - 45,645	- 6,483 6,483	45,645 6,483 52,128
Amara 2012 - 2015	Auger RAB RC Diamond Subtotal	252 82 130 463 927	2,173 - - - 2,173	- 1,076 - - 1,076	- - - - -	- - 21,472 - 21,472	- - - 127,906 127,906	2,173 1,076 21,472 127,906 152,627
Perseus 2017	Auger Aircore RC RC GC Diamond Subtotal	19 50 267 417 121 874	203 - - - - 203	- - - - - -	- 2,030 - - - 2,030	- - 20,557 12,709 6,643 39,909	- - - - 11,756 11,756	203 2,030 20,557 12,709 18,399 53,898
Total	Auger¹ RAB² Aircore RC RC GC Diamond	271 82 50 1,155 417 648	2,376 - - - - -	- 1,076 - - - -	- - 2,030 - - -	- - - 92,756 12,709 6,643	- - - - - 146,299	2,376 1,076 2,030 92,756 12,709 152,942
	Total	2,641	2,583	1,076	2,030	112,108	146,299	264,096

¹Used only to inform estimates of Mineral Resources in heap leach material
²Not used to inform estimates of Mineral Resources
³RC drill metres for Perseus diamond holes represents RC pre-collars.

Drill hole collar locations have been surveyed by qualified surveyors. BRGM's diamond holes and RC holes drilled by Cluff were not down-hole surveyed. Cluff diamond core holes were surveyed. Most Amara and Perseus RC and diamond drilling was down-hole surveyed at generally 30 metre intervals using digital instruments. Aircore holes were not down-hole surveyed.

Drill Coverage
Previous drilling by Cluff and Amara tested the northern portion of the Yaour?(C) deposit at approximately 25m East x 25m North spacing to approximately 80m depth below original surface. Drilling over the remainder of the deposit was mainly limited to 50m East x 50m North spacing extending to approximately 150m depth below original surface.

Previous drilling of CMA deposit by Amara provided drill coverage at 50m x 50m spacing to a maximum depth of approximately 450m below surface.

Drilling undertaken by Perseus during 2017 was designed to infill Yaour?(C) drill coverage to 25m East x 25m North spacing within the limits of an optimum pit shell generated using a preliminary resource model and a US$1,200 gold price.

Similarly, Perseus' drilling of the CMA deposit during 2017 was designed to infill drill coverage to 25m East x 50m North within the limits of a US$1,200 optimum pit shell.

Resources in the Yaour?(C) deposit are now delineated by drilling at, generally, 25m East x 25m North spacing to 80m-100m below original surface. Below that, drill coverage is generally at 50m East x 50m North spacing. The majority of drilling in the Yaour?(C) deposit is RC drilling. Pit optimisations undertaken for the 2017 definitive feasibility study demonstrate that the Yaour?(C) US$1,200 optimum pit shell remains locally drill limited.

The CMA deposit is now delineated by drilling at 25m East x 50m North spacing to between 100m and 250m below original surface.Beneath that, drill coverage at 50m East x 50m North spacing extends to a maximum depth of approximately 450m below surface.The majority of drilling in CMA deposit is diamond core.

Additional drilling data include:

417 RC grade control (RCGC) holes drilled to depths of around 30m below current surface in the central portion of the existing Yaour?(C) open pit;
252 power auger holes at 25m x 25m spacing drilled by Amara in 2015 to permit estimation of grades of the heap leach material; and
11 diamond core holes drilled to twin heap leach auger holes.

Sampling
Sampling has been relatively consistent across drilling campaigns. RC drill samples were collected at drill sites over generally 1 metre intervals and split using multi-stage riffle splitters. Sample weights were nominally 3 kilograms. For some Amara and most Perseus RC drilling, sample recovery was measured by weighing bulk recovered samples. For Amara and Perseus RC drill campaigns, samples were logged visually for recovery, moisture and contamination. The majority of Amara and Perseus RC samples were logged as dry and sample contamination in RC holes is not considered a significant risk to the reliability of resource estimates.

Diamond core was generally sawn in half using a diamond blade saw, with one half sent for assaying and the other half stored in core trays for reference. Samples were normally taken over generally 1 metre intervals. For most Amara and Perseus core drilling, core recoveries were measured and averaged in excess of 90%.

Sample Analytical Methods
The majority of sample preparation has been carried out on site by Cluff, Amara and Perseus in a dedicated sample preparation facility. Sample preparation typically comprised drying, crushing to -2 millimetres and pulverising of a 1.5 kg subsample. Internal laboratory checks required at least 85% of the pulp passing -75 microns.

Assaying has been carried out by commercial laboratories. A small number of assay data derive from cyanide bottle roll analyses carried out on site by Cluff and Amara.

The majority of samples have been assayed by 50 g fire assay technique with AAS determination. Assaying has been undertaken variously by Abilabs, Abidjan (C??te d'Ivoire), Intertek Laboratories (Gh) Ltd, Tarkwa, SGS Tarkwa (Ghana), Bureau Veritas, Abidjan and Actlabs, Ouagadougou (Burkina Faso). The majority of assays informing the resource estimate derive from Actlabs.

With the exception of BRGM and early Cluff drilling, a consistent regime of quality assurance has been employed including submission of duplicate pulp samples coarse blanks and certified reference materials. Several campaigns of inter-laboratory check assaying have also been undertaken for samples from Amara and Perseus drilling.

Estimation Methodology
Geological logging of lithology and weathering and three dimensional interpretations of mineralised zones were considered in conjunction with gold grades of two metre composited sample intervals to delineate mineralised domains at each of the deposits within which the tenor and spatial trends of mineralisation are similar. Geometry of gold mineralisation in CMA deposit is relatively straightforward. Interpretation of the more complicated structural controls on mineralisation for the Yaour?(C) pit was assisted by historic grade control rip-line sampling, mapping of open pit exposures and by the trial grade control drilling undertaken in 2017.

Surfaces comprising the base of laterite, base of complete weathering, base of partial weathering and base of fracture associated weathering (top of fresh rock) were interpreted by Perseus from geological logging of resource holes. These surfaces were combined with the mineralised domains for resource modelling, including density assignment.

Surfaces representing the base of complete and partial oxidation were interpreted for assignment of metallurgical parameters during mining evaluations.

For in situ resources, MIK with block support adjustment was used to estimate gold resources into blocks with dimensions of 12.5 metres (east) by 25 metres (north) by 5 metres (elevation). The block size reflects the spacing of data available to inform the estimates and the proposed mining bench height.MIK of gold grades used indicator variography based on the two metre resource composite sample grades. Gold grade continuity was characterised by indicator variograms at 14 indicator thresholds spanning the range of grades in each of the mineralised domains.

The effect of extreme grades on estimates was reduced by generally selecting of the median instead of the mean for the highest indicator class. For a small number of mineralisation/weathering domain groups, the upper class grade was derived from the class mean excluding two or three outlier composite grades.

Block support adjustments were derived from the variogram of gold grades in the mineralised domains. The selective mining unit was assumed to be in the general range 4m East by 6m North by 2.5mRL, reflecting the scale of mining proposed for Yaour?(C).Additional adjustments for the "Information Effect" have been applied, reflecting high quality grade control sampling at 5m East by 8m North by 1.25m.

Densities were assigned to in-situ estimates on the basis of 11,024 immersion density measurements performed by Amara and Perseus on oven dried, plastic sealed samples of diamond core. Comparison between Amara and Perseus measurements, and independent repeats suggest Amara density measurements are biased high by an average of around 3%. Estimates were assigned by mineralisation and weathering domain from average density measurements inclusive of factoring of Amara density measurements to compensate for the apparent slight bias.

Selective mining of the heap leach material, other than on a heap-by-heap or lift-by-lift basis, is not considered feasible. Volumes of remnant heap leach material were estimated by forming a three dimensional solid of each of the heaps based on a recent LiDAR topographic survey and logging of the plastic liner at the base of each heap during auger drilling. An average gold grade was estimated for each heap component from the de-clustered average of grades of auger samples inclusive of upper cuts selected for each volume. The CMA3 heap was subdivided into upper and lower lifts for grade assignment reflecting notable variation in average gold grades in auger samples. All other heaps were not subdivided. A density of 1.4t/m³ was assigned to the heaps on the basis of 11 volumetric pit measurements performed by Perseus on samples collected from approximately 1 to 1.5 metres below the surface of each heap.

The Mineral Resource estimates can be reasonably expected to provide appropriately reliable estimates of potential mining outcomes at the assumed selectivity without application of additional mining dilution or mining recovery factors.

Compositing and wire-framing were performed using Micromine software. Exploratory data analysis, variogram calculation and modelling, and resource estimation were performed using FSSI Consultants (Australia) Pty Ltd (FSSI) GS3M software.

Resource Classification
Confidence categories were applied to the estimates of Mineral Resources on a block-by-block basis based on the number and location of data available to inform estimates in each block. This is based on the principle that larger numbers of samples, which are more evenly distributed within the search neighbourhood, will provide a more reliable estimate. Resource classification also considered the quality of the data collected (geology, survey and assay data), the density of data, the confidence in the geological models and mineralisation model, and the grade estimation quality.

Generally, Indicated resources are informed by drilling at approximately 25m x 50m spacing or closer and Inferred resources are in areas of 50m x 50m drilling and on the peripheries of drilling to a maximum extrapolation distance of approximately 75m.

Potential for Eventual Economic Extraction
The estimate of in situ Mineral Resources is constrained to an optimal pit shell generated using cost and revenue parameters deriving from the 2017 Definitive Feasibility Study and a gold price of US$1,800/oz. The cut-off grade of 0.4g/t Au for the in situ Mineral Resource estimates reflects the approximate average break-even cut-off that derives from the same economic parameters and gold price. The price of US$1,800 reflects the company's view of potential long-term gold price.

Estimates of Mineral Resources in the heap leach material are stated at the same cut-off grade on the basis of each heap component being above or below cut-off.

Ore Reserves

The Ore Reserve is summarised in Table 3 and is based on the Yaour?(C) Mineral Resources as at 2 November 2017 and pit limit optimisation, design and scheduling of the resources. All Ore Reserves are reported in accordance with the JORC Code. Refer to Appendix 1 for Section 4 of the JORC Table 1 assessment criteria. The Ore Reserve in Table 3 reports the Ore Reserves by category, deposit and type, above variable cut-off grades. The classification categories of Proved and Probable under the JORC Code are equivalent to the CIM categories of similar name (CIM, 2010).

Probable Ore Reserves are found within the economic limits of two adjoining open pits that have been designed based on Indicated Mineral Resources that incorporated all available Resource in-fill drilling results, a gold price of US$1,200/oz and mining, processing and general and administration costs derived from a combination of Perseus's operating experience at Edikan and Sissingu?(C), and Yaour?(C) specific test work, studies and quotations.

CMA and Yaour?(C) Ore Reserves are based on Mineral Resources estimated using MIK techniques.

Ore Reserves contained in decommissioned heap leach pads created by prior owners of the Yaour?(C) Mining Leases have been included in the Ore Reserve estimate.

Table 3: Yaour?(C)'s Proved and Probable Ore Reserves as at 2 November 2017

Deposit	Deposit Type	Proved			Probable			Proved + Probable
		Quantity	Grade	Gold	Quantity	Grade	Gold	Quantity	Grade	Gold
		Mt	g/t gold	koz	Mt	g/t gold	Moz	Mt	g/t gold	Moz
CMA	Open Pit				20.7	1.97	1.31	20.7	1.97	1.31
Yaour?(C)	Open Pit				4.7	1.04	0.15	4.7	1.04	0.15
Sub-Total	Open Pit				25.3	1.80	1.47	25.3	1.80	1.47
Heap Leach⁶	Stockpile				1.4	1.14	0.05	1.4	1.14	0.05
Total					26.8	1.76	1.52	26.8	1.76	1.52

Notes:

Numbers are rounded and may not add up correctly in the table
All the estimates are on a dry tonne basis
Based on November 2017 Mineral Resource estimation
Variable gold cut-off grade based on material type
Inferred Mineral Resource is treated as mineralised waste
Heap Leach refers to decommissioned heap leach pads established by prior owners of Yaour?(C)

Economic Assumptions

Gold metal price US$1,200/oz;
Un-escalated average costs used in optimising pit limits; and
A discount rate of 10% (real) has been assumed to estimate the net present values of forecast cash flows.

Mining Parameters

The chosen method for the Open Pit Reserves is conventional open pit mining utilising hydraulic excavators and trucks. In ore, mining bench heights are 5m with 2.5m flitches to minimise ore loss and waste rock dilution. Waste blocks adjacent to ore are mined on 5m benches, while waste more distant to ore is mined on 10m benches.
The economic pit shell was defined using Whittle 4X pit limit optimisation software ("Whittle 4X") with inputs such as geotechnical parameters, ore loss and dilution, metallurgical recovery and operating costs.
The pit limit optimisation software was run with revenue generated only by Indicated Mineral Resources. No value was allocated to Inferred Mineral Resources.
Whittle 4X input parameters were generally based on a combination of Perseus's operating experience at Edikan in Ghana, recent experience from the start-up of mining at Sissingu?(C) in C??te d'Ivoire and supporting technical studies to DFS level.
The pit slope design assumptions are based on a geotechnical study by Pitt and Sherry. Inter-ramp pit slopes are 40 to 59 degrees inclusive of berms spaced at between 5m and 20m vertically and berm widths of 5m to 7.5m.
Pit ramps have been designed for a rear-dump truck fleet of 90t capacity and are set at a net 14m (single lane) to 24m (dual lane).
Vertical mining advance has been capped based on Perseus's operating experience using similar equipment at Edikan.
The resource models used in planning employed MIK estimation to assign block grades that also represented the ore mining loss and dilution.
A statistical block size correction was applied to the in situ MIK model to model expected loss and dilution. The resulting ROM model was used for mine planning.
Minimum mining width of 40 to 50m was generally applied to the pit designs.
There are no physical constraints to mining within the lease area. No property, infrastructure or environmental issues are known to exist which may limit the extent of mining within the mining lease.
Perseus will apply to convert its exploration lease area covering the Yaour?(C) Project to a mining lease. No impediments to the issuing of the mining lease are expected.
Mining costs are based on a competitive Request for Quotation involving five mining contractors currently operating in West Africa. The final mining cost used in the optimisation is based on the average of rates supplied by 3 mining contractors, except for drill and blast costs which were determined through analysis and grade control and rehandle costs which were based on rates derived from Perseus' other operations.
Recoveries and processing costs have been generated based on a comprehensive metallurgical test work program. G&A and other costs have been based on very recent experience at both of Perseus's other mines in West Africa, namely Edikan in Ghana and Sissingu?(C) in C??te d'Ivoire and from quotes specifically received for the Yaour?(C) Project.
Heap Leach material is mined and fed to the processing plant during the mine life and all the material is rehandled by truck directly to the crusher on the ROM.
Environmental work has been completed and the ESIA approved by the appropriate authorities for a very similar but larger Project. Revisions will be required to the approved ESIA to align with the current Project scale but no problems are anticipated as no additional environmental issues have been identified.
Ore cut-off grades are based on the gold price, cost and mining parameters.

Table 4: Summary of Cut-off Grades

Deposit	Summary of Cut-Off Grade by Ore Type (g/t gold)
Deposit	Oxide	Transition	Fresh Basalt	Fresh Granodiorite
CMA	0.40	0.45	0.50	-
Yaour?(C)	0.40	0.45	0.65	0.65
Heap Leach	0.45¹	-	-	-

Notes:
1 If the average grade of an individual heap leach pad is above the cut-off grade, then 100% of that pad is mined with no selectivity

Processing Parameters

The process metallurgical recovery for gold is fixed by material type in each deposit. Recovery variation is a function of differing metallurgical properties of ores from different deposits.

Table 5: Metallurgical Recoveries

Ore Source and Rock Type	Units	Heap Leach		Oxide		Transition		Fresh

CMA Granodiorite	%	-		92	%	90	%	(100 x (Au - (0.095 x Au^0.94) - 0.011) / Au)%
CMA Basalt/Volcanoclastic	%	-		92	%	90	%	(100 x (Au - (0.095 x Au^0.94) - 0.011) / Au)%
Yaour?(C) Granodiorite	%	-		92	%	90	%	90	%
Yaour?(C) Basalt/Volcanoclastic	%	-		92	%	90	%	90	%
Heap leach - CMA 1	%	85	%	-		-		-
Heap leach - CMA 2	%	83	%	-		-		-
Heap leach - E Global	%	84	%	-		-		-

No deleterious material has been identified.
Average annual processing throughput rate of oxide, transition and CMA fresh ore is 3.3 million tonnes per annum. The throughput rates for Yaour?(C) fresh ore is lower due to the high power demand to grind to the required particle size for optimum recovery and is nominally 2.5 million tonnes per annum. The processing circuit involves single stage crushing, semi-autogenous grinding, ball milling, pebble crushing, gravity recovery and CIL.

Ore Reserve Classification
Ore Reserves have been classified based on the underlying Mineral Resources classifications and the level of detail in the mine planning. The Mineral Resources were classified as Indicated and Inferred (no Measured was identified). The Ore Reserves, based only on Indicated Resources, have been classified as Probable Ore Reserves.

The Ore Reserve is classified as Probable in accordance with the JORC Code, corresponding to the Mineral Resource classification of Indicated and taking into account other factors where relevant. The deposit's geological model is well constrained. The Ore Reserve classification is considered appropriate given the nature of the deposit, the moderate grade variability, drilling density, structural complexity and mining history. Therefore it was deemed appropriate to use Indicated Mineral Resources as a basis for Probable Reserves.

No Inferred Mineral Resources were included in the Ore Reserve estimate.

To discuss any aspect of this announcement, please contact:

Managing Director:Jeff Quartermaine at telephone +61 8 6144 1700 or email jeff.quartermaine@perseusmining.com;

Media Relations:Nathan Ryan at telephone +61 4 20 582 887 or email nathan.ryan@nwrcommunications.com.au (Melbourne)

Caution Regarding Forward Looking Information:
This report contains forward-looking information which is based on the assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management of the Company believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect. Assumptions have been made by the Company regarding, among other things: the price of gold, continuing commercial production at the Edikan Gold Mine without any major disruption, development of a mine at Sissingu?(C) and/or Yaour?(C), the receipt of required governmental approvals, the accuracy of capital and operating cost estimates, the ability of the Company to operate in a safe, efficient and effective manner and the ability of the Company to obtain financing as and when required and on reasonable terms. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used by the Company. Although management believes that the assumptions made by the Company and the expectations represented by such information are reasonable, there can be no assurance that the forward-looking information will prove to be accurate. Forward-looking information involves known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any anticipated future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others, the actual market price of gold, the actual results of current exploration, the actual results of future exploration,changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company's publicly filed documents. The Company believes that the assumptions and expectations reflected in the forward-looking information are reasonable.Assumptions have been made regarding, among other things, the Company's ability to carry on its exploration and development activities, the timely receipt of required approvals, the price of gold, the ability of the Company to operate in a safe, efficient and effective manner and the ability of the Company to obtain financing as and when required and on reasonable terms. Readers should not place undue reliance on forward-looking information. Perseus does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

Competent Person Statement

The information in this report that relates to Mineral Resources is based on Information compiled by Mr Jonathon Abbott, a Competent Person who is a member of the Australian Institute of Geoscientists. Mr Abbott is a full time employee of MPR Geological Consultants Pty Ltd. Mr Abbott has sufficient experience, that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves,' and a Qualified Person as defined in NI43-101. Mr Abbott consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

The information in this report that relates to Ore Reserves is based on information compiled by Mr Joe McDiarmid, a Competent Person who is a Chartered Professional Member of The Australasian Institute of Mining and Metallurgy and is a full-time employee of RPM Advisory Services Pty Ltd. Mr McDiarmid has sufficient experience, that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr McDiarmid consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.